Property Rights in New Zealand Abalone Fisheries SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Property Rights in New Zealand Abalone Fisheries
Roger Beattie became involved in the business of abalone fisheries as an owner and operator in 1976. At the time, a good diver could typically catch 500 kilograms of abalone in a day. With the price averaging NZ$0.50 per kilogram, a day's work returned about NZ$250. Over time, abalone prices slowly rose to NZ$1 per kilogram so that in 1983, Beattie was annually taking home approximately NZ$45,000. Convinced that there was more money to be made in the fishery where he dove, Beattie began researching other fisheries, market trends, and processing options. He then organized the local divers to put pressure on the local processing plant to match the returns being offered overseas. Then, in 1986, the rules of the game changed. With the introduction of individual transferable quotas (ITQs), abalone divers were given a property right in the fishery. No longer did the commons rule. These ITQs improved the health of the abalone fishery and helped Roger Beattie move from a small-time owner/operator to a successful entrepreneur. He began seeking out opportunities to improve his bottom line and the local environment.
Swot Analysis of "Property Rights in New Zealand Abalone Fisheries" written by Terry Anderson, J. Bishop Grewell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Abalone Beattie facing as an external strategic factors. Some of the topics covered in Property Rights in New Zealand Abalone Fisheries case study are - Strategic Management Strategies, Government, Marketing, Organizational structure, Strategy execution, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Property Rights in New Zealand Abalone Fisheries casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Property Rights in New Zealand Abalone Fisheries
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Property Rights in New Zealand Abalone Fisheries case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Abalone Beattie, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Abalone Beattie operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Property Rights in New Zealand Abalone Fisheries can be done for the following purposes –
1. Strategic planning using facts provided in Property Rights in New Zealand Abalone Fisheries case study
2. Improving business portfolio management of Abalone Beattie
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Abalone Beattie
Strengths Property Rights in New Zealand Abalone Fisheries | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Abalone Beattie in Property Rights in New Zealand Abalone Fisheries Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Property Rights in New Zealand Abalone Fisheries Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Abalone Beattie is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Abalone Beattie is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Property Rights in New Zealand Abalone Fisheries Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Abalone Beattie is one of the leading recruiters in the industry. Managers in the Property Rights in New Zealand Abalone Fisheries are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Abalone Beattie are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Abalone Beattie has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Property Rights in New Zealand Abalone Fisheries Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Abalone Beattie is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Terry Anderson, J. Bishop Grewell can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Abalone Beattie has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Abalone Beattie to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Abalone Beattie is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Abalone Beattie in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Abalone Beattie
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Abalone Beattie does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Abalone Beattie is present in almost all the verticals within the industry. This has provided firm in Property Rights in New Zealand Abalone Fisheries case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Abalone Beattie digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Abalone Beattie has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Abalone Beattie in the sector have low bargaining power. Property Rights in New Zealand Abalone Fisheries has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Abalone Beattie to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Property Rights in New Zealand Abalone Fisheries | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Property Rights in New Zealand Abalone Fisheries are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Property Rights in New Zealand Abalone Fisheries, it seems that the employees of Abalone Beattie don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Abalone Beattie supply chain. Even after few cautionary changes mentioned in the HBR case study - Property Rights in New Zealand Abalone Fisheries, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Abalone Beattie vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Property Rights in New Zealand Abalone Fisheries HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Abalone Beattie has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Abalone Beattie has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Property Rights in New Zealand Abalone Fisheries HBR case study mentions - Abalone Beattie takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Property Rights in New Zealand Abalone Fisheries, in the dynamic environment Abalone Beattie has struggled to respond to the nimble upstart competition. Abalone Beattie has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Abalone Beattie products
– To increase the profitability and margins on the products, Abalone Beattie needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Abalone Beattie, firm in the HBR case study Property Rights in New Zealand Abalone Fisheries needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Abalone Beattie has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Property Rights in New Zealand Abalone Fisheries, is just above the industry average. Abalone Beattie needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Property Rights in New Zealand Abalone Fisheries that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Property Rights in New Zealand Abalone Fisheries can leverage the sales team experience to cultivate customer relationships as Abalone Beattie is planning to shift buying processes online.
Opportunities Property Rights in New Zealand Abalone Fisheries | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Property Rights in New Zealand Abalone Fisheries are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Abalone Beattie can use these opportunities to build new business models that can help the communities that Abalone Beattie operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Learning at scale
– Online learning technologies has now opened space for Abalone Beattie to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Abalone Beattie can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Abalone Beattie to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Abalone Beattie to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Abalone Beattie can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Abalone Beattie to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Abalone Beattie can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Abalone Beattie can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Abalone Beattie has opened avenues for new revenue streams for the organization in the industry. This can help Abalone Beattie to build a more holistic ecosystem as suggested in the Property Rights in New Zealand Abalone Fisheries case study. Abalone Beattie can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Abalone Beattie can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Abalone Beattie can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Property Rights in New Zealand Abalone Fisheries, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Abalone Beattie is facing challenges because of the dominance of functional experts in the organization. Property Rights in New Zealand Abalone Fisheries case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Abalone Beattie can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Abalone Beattie can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Property Rights in New Zealand Abalone Fisheries External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Property Rights in New Zealand Abalone Fisheries are -
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Abalone Beattie can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Abalone Beattie needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Abalone Beattie can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Consumer confidence and its impact on Abalone Beattie demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Abalone Beattie can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Abalone Beattie can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Property Rights in New Zealand Abalone Fisheries .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Abalone Beattie business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Abalone Beattie has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Abalone Beattie needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Abalone Beattie
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Abalone Beattie.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Abalone Beattie will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Abalone Beattie needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Property Rights in New Zealand Abalone Fisheries, Abalone Beattie may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Regulatory challenges
– Abalone Beattie needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Abalone Beattie with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Property Rights in New Zealand Abalone Fisheries Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Property Rights in New Zealand Abalone Fisheries needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Property Rights in New Zealand Abalone Fisheries is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Property Rights in New Zealand Abalone Fisheries is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Property Rights in New Zealand Abalone Fisheries is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Abalone Beattie needs to make to build a sustainable competitive advantage.